When it is time to get-out Get-out. Years ago I read multiple books about buying and selling Most investors do really well at selecting stocks to buy. Most sellers delay for many reasons. It is hard to dump a stock that has done well for you. This delayed sell usually cost a lot. Yes staying out of LYC and getting out of NIVDA a year ago cost me. I track all stock I get out of for two years Over all getting out quickly has substantially increased my annualized yield in spite of walking away from a few winners.
Lyc EPS have decreased over the last two years from $0.60 to $0.09 Every indication is That SAR will be down again. With an EPS of 0.09 and a $7.00 stock price they are only earning 1.3% on share price. Are you happy with this? Only earnings grow a company.
Below is a chart of NdPrO. This responsible for most of Lynas revenue, do you see any thing that will increase revenue and earnings. For LYC to have a PE of 40 it will take a price of 800 RMB WV. S&P 500 PE about 22 ASX PE just over 30. As you said LYC does not pay a dividend. S&P 500 Dividend rate less than 2%. ASX 200 dividend rate greater than 4%. Dividends are why ASX support a higher PE than US exchanges.
If you would not even consider buying to day get out now.
LYC Price at posting:
$7.01 Sentiment: Sell Disclosure: Not Held
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